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The Leads War: Buying Them vs. Generating Your Own

Posted on: September 11th, 2012 by credit

Selling cars is tough because these things are very expensive. In order to meet their sales quotas, they should not only rely on people visiting the dealerships because this does not guarantee it will translate into a successful sale. That is why it is important for car dealers to use auto leads because these contain information about the people who are interested in buying cars. With auto leads, sales and marketing associates working for auto dealers will know more about their target market. Car dealerships have two options when it comes to auto leads: buying them from a company that sells them, or they can generate their own leads. Here is a look between these two choices.

Purchasing Leads

A lot of auto dealerships choose to buy leads to generate more income. One of the biggest advantages of buying these leads is the convenience it affords. Car dealers get to save time, money, and effort because they can simply hire a lead generator company to do the dirty work for them. As there are plenty of lead generator companies on the Internet today, finding one is very easy. Also, the time required to come up with your own leads can be spent on more important things, such as closing the sale on a car instead of looking for more potential buyers. Reputable lead generator companies also do a screening process to ensure the authenticity of the leads they sell.

Generating Your Own Leads

On the other hand, some car dealerships think that generating their own leads is more lucrative than purchasing them from a lead generator company. By generating their own leads, companies are in control of every aspect of lead generation. They can simply rely on their website and no longer have to depend on others to come up with leads for them. This also translates to more savings for the company. They have the freedom to produce their own leads when they need to. They can also customize their own leads to tailor-fit their needs without compromising quality.

The Bottomline

So whether you decide to buy leads or generate your own leads for your car dealership business, the key is to know which one will benefit you the most. You do not have to limit yourself by choosing one over the other because you also have the option of using both methods to generate more income. You just have to maximize your resources wisely so the effort and money you invested are not wasted.

Reminders for Buying Leads

Posted on: June 1st, 2012 by credit

Buying leads from a third party provider is indeed more convenient for car dealers and other businesses. Lead generation involves implementation of various marketing strategies which should be done on a regular basis. Balancing this with other dealership tasks, like dealership advertising and lead conversion, is a struggle for many car dealers. Sometimes, car dealers spend so much time on generating leads in expense of other important tasks. Although buying leads requires them to shell out extra cash, having a lead generation company like Approved Auto Leads take off a heavy work load is still such a relief. However, dealers like you should have to keep some important things in mind when buying leads.

1. Make sure the lead provider can help you.

Since you want to achieve success in your dealership, it is just important that you work with a reliable and competent lead generation company. Not all lead providers work their best in generating leads for their clients. So, spend some time researching about your lead provider—their track record, BBB rating, years of experience, complaints filed against them, and the like. A lead provider with more years of experience in the industry is most likely credible. Moreover, find out if your lead provider is also getting leads from a third party. If so, ask them about how they make sure they are getting quality leads.

2. You should only buy quality leads.

Quality is a very important factor to consider when buying leads. Quality leads are those that are fresh, most likely to be converted, and have complete contact information. Lead providers produce quality leads if the leads they have generated undergo a screening process before being delivered to their clients. The screening process involves information verification and lead qualification. Quality leads are also produced if lead generation techniques were appropriately and strategically executed. Ask your lead provider about the various techniques they use and how they do them.

3. Leads must be delivered fast.

Buy leads from a lead provider that sends you leads quickly. This is important because if leads are not delivered fast, you will lose the interest of your prospects. Moreover, your competitors could get to them first. Your lead provider should understand this and be able to deliver you leads as quickly as possible.

4. Be more concerned about the conversion rate than the price.

When you buy leads, make sure that they will most likely convert into sales. Keep in mind that the price of the leads and their conversion rates always have to do something with each other. High converting leads are usually expensive while those that have low conversion rates are cheaper. In any event, focus on the leads’ capability of boosting your sales. Leads are a good investment especially if you know you are buying good ones. Moreover, it is also useless to buy leads that would not convert at all.

Why Auto Dealers Choose to Buy Leads

Posted on: January 29th, 2012 by credit

Buying auto leads enable auto dealerships to make sales and increase profits.  Auto leads contain relevant details about a prospective car buyer such as the name, address and contact details.  Hence, these leads make it very easy for dealers to contact a potential customer.  If the auto dealer pursues the lead and makes the right offer, a sale can be had.

Auto dealerships that rely on auto leads to make sales spend a significant amount of money when purchasing leads from auto lead generators.  The expense of buying leads is certainly less than the cost of traditional marketing such as radio and television advertising, but the purchase of leads still require a hefty sum from auto dealers.  It must be noted that auto dealerships actually have the option not to buy the leads because these can be rented.  They can spend less money on leads by renting instead of buying.  One may be inclined to ask, “Why do auto dealers buy leads when they can just rent?”

Without a doubt, renting auto leads would be cheaper for any auto dealership.  They can save a lot of money by just paying a sum for the temporary use of an auto lead, or the temporary access to a potential customer’s details.  However, while renting leads present the opportunity to save money, it can also deprive an auto dealer of the opportunity to make more money.  Renting means there are others with access to the leads.  If others have access to the leads, this means that the chances of sales conversion for the auto dealer that rented the leads will be reduced.  Indeed, by renting leads, auto dealers have less chances of making a sale and generating revenue.

On the other hand, it would be very beneficial for any auto dealer to buy leads.  When an auto dealer buys auto leads, it is investing its money on something that can bring forth much profit.  However, the leads that an auto dealer must purchase should be the exclusive variety.  Non-exclusive leads are also accessed by other dealerships, and the tight competition would work against the auto dealer’s goal to make a sale.  Exclusive leads are not accessible by others, and if purchased, only the auto dealer that purchased them can pursue the lead.

While it would be more expensive to buy leads rather than rent them, the money to be spent on them would be spent well.  This is because leads (the exclusive leads specifically) can increase the auto dealer’s return on investment.  Exclusive leads have higher chances of sales conversion, mostly because there is no competition to worry about.  The auto dealer is free to pursue to lead,  make an offer and hopefully close the deal.

Auto dealers that are interested to buy leads can do so from Approved Auto Leads.  The lead generating company has been a top provider of exclusive auto leads, and has served many auto dealerships in the past ten years.  Indeed, auto dealers looking to purchase leads to improve their profit margin need not look further than  Approved Auto Leads for what they need.

 
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